Copper Technologies, a UK based crypto custody firm which is backed by Barclays, has reportedly pulled out its application for Crypto license from the UK’s Financial Conduct Authority (FCA). The decision taken on December 20 indicates the company’s strategic management decision to shift to foreign markets.
This is because the latest statistics show that 88% of crypto registration applications with the FCA were rejected in 2024, which shows increasing difficulties for crypto firms operating in the UK.
The automotive Copper Technologies, led by the former UK Chancellor, Philip Hammond, claimed while the UK is still important, the new global growth strategy involves Europe, the United States and the Middle East.
Barclays-backed Copper Technologies Changes Global Strategy
.Copper Technologies is another early player in the crypto custody space, having been launched in 2018 and has received significant investment from Barclays. Still, the firm’s issues with regulations started in 2022 when it could not obtain a permanent FCA license for carrying out activities of a crypto asset business.
Amar Kuchinad, a banking industry specialist, joined Copper in October 2024, where he became the firm’s new global CEO. During his tenure, the company has decided to operate only in countries with fewer restrictions, like Switzerland, Hong Kong, and Abu Dhabi.
“Since joining Copper, my focus has been to fine-tune its international expansion plan, which has meant the defining course and plan of action,” Kuchinad said in justification for the withdrawal. He also said, although the region is less significant in licensing today, it is a key part of Copper’s past and potential future.
Nearly 90% of FCA Crypto Applications Fail in 2024
The withdrawal of Copper’s application comes at the same time that worrying numbers from the FCA. The FCA made this disclosure in its annual report for the year 2024 released in September, out of 35 license applications in crypto, only four were granted. As for the outcomes of the applications, 87.6% of the applicants either withdrew their applications or were rejected/ refused.
The general rejection rate was high, and the FCA attributed it to poor implementation of the anti-money laundering controls. He stressed that governance compliance shields consumers and guards the financial system.
“Where parts have been omitted, there have been matters that we consider necessary to enable Us to carry out an assessment,” the FCA stated in its report, minimizing the prospects for eligible crypto firms.
The withdrawal of the application by Copper Technologies indicates the current tough approach being applied by the UK regulator as a result of the increased stringencies they place on organizations.
Europe, the US and the Middle East Become the Hot Topic
As Copper moves out of the UK, its global plan focuses on expansions in Europe, the United States, and the Middle East. The company has started work to get approval for regulation in Switzerland, which is a country that promotes cryptocurrencies, and the company is further present in Hong Kong and Abu Dhabi.
“That is why we made the right decision to withdraw our application for registration as a crypto asset institution in the United Kingdom, so our business can focus on high-growth market areas,” Kuchinad said.
These regions present a more favorable regulatory structure with which Copper feels that the firm can achieve more. Copper also aims to diversify its service offerings to meet its international customer base better, reaffirming its goal to be at the forefront of the cryptocurrency custody business.
Conclusion on Copper Technologies Crypto License
Copper Technologies’ exit proves that many crypto companies struggle to operate in the UK due to its restrictive regulatory environment. Currently, approximately 90% of the applications fail, and thus, the UK may lose its attractiveness for cryptocurrency companies.
For copper technologies, this is a clear change towards markets with less regulation, such as Switzerland, Middle Eastern countries, and the United States. Barclays’ ownership forms the firm’s connection to the UK, but its international expansionist strategy indicates a new chapter for the Barclays-backed entity.
Copper’s shift in focus shows what many cryptocurrency businesses around the world face in this environment of ongoing regulatory developments. Keep following Turkishnyradio for latest crypto updates and more on Copper Technologies.
FAQs
- What motivated Copper to withdraw its application for a UK crypto license?
Copper pulled out its application because it could not meet the various regulations set by the FCA of the United Kingdom. The company has selected major marketing segments like Europe, the US, and the Middle East, which are believed to be the ideal places for business.
- What does FCA do in terms of regulating cryptocurrencies?
The FCA oversees and monitors cryptocurrency companies in the UK to compel them to adhere to AML practices or shield consumers. Due to the FCA high standards, around 90 percent of the crypto license applications have been rejected, withdrawn, or refused by 2024.
- Is Copper bout to exit the UK completely?
However, Copper has said that the UK is still one of its focal areas. Even if it has withdrawn its license application, Copper intends to have offices in UK but focus on expansion in other parts of the globe.
- What markets are Copper technologies targeting now?
Copper is moving away from the Australian market to some global markets such as in Switzerland, Hong Kong, Abu Dhabi and the United States due to politicalัย liberty.
